Much of the media attention surrounding the debate going on in Washington is about the issue of increasing the debt ceiling. If one reads Standard & Poor's recent report that placed U.S. government debt on "Negative Credit Watch", the primary issue cited in S&P's report was not simply an increase in the debt ceiling. A bigger issue cited in the report was Washington's lack of any credible plan on reducing the actual level of debt. In Standard & Poor’s Negative Credit Watch report S&P concluded,
The below video provides a clear summary of the current debate.
“Congress and the Administration have not achieved a credible solution to the rising U.S. government debt burden [emphasis added] and are not likely to achieve one in the foreseeable future.”
Lastly, Karl Denninger of The Market Ticker, provides a detailed summary of the debt issues facing the U.S. in a post titled, The Truth About Budgets, For Both Left and Right. It is an article that should be read in order to better understand the debt issue debate.